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January 24, 1999
The articles provided below were initially compiled during the past week by the SUN DAY Campaign (ph. 301-270-2258; fax: 301-891-2866) for the 36 member organizations of the Sustainable Energy Coalition (list available upon request).
Feel free to distribute this newsletter to others. In addition, please let us know of other U.S. organizations, businesses, or government agencies that would like to be added to the e-mail list for this publication. This newsletter is presently sent to over 650 recipients nationwide.
If you want any of the items we have offered to fax, please provide a number for a dedicated fax line.
FEDERAL ENERGY BUDGET & TAXES
1.) Congressional Appropriations Outlook:
Congressional staff members believe there will likely be a confrontational approach again this year between Democrats and Republicans when it comes to appropriations issues. This is partly because of the downward trend in the budget and the domestic discretionary spending caps. However, there is some thought that the caps may be exceeded later in the year.
2.) Gas Tax Poll - continued:
We have received the full text (7 pages) of the American Lung Association's recent survey which found that "Americans favor uniform national clean gasoline standards and are willing to pay more for cleaner gasoline if its means cleaner air. ... The survey also reveals that an overwhelming majority of people favor requiring the same strict air pollution standards for sport utility vehicles and minivans as for passenger cars." (This was reported in last week's Weekly Update.") Let us know if you would like us to e-mail or fax this to you.
3.) House HUD-VA Appropriations Committee:
Rep. Alan Mollohan (D-WV) has been selected as ranking Democrat on the HUD-VA appropriations subcommittee, which oversees EPA's budget. The Sierra Club reports that in 1998, his League of Conservation Voters (LCV) score was 45% and 15% in the 104th Congress. He voted against the environmental community on the Knollenberg global warming gag rule and the EPA riders amendment. In addition, Rep. Bud Cramer (D-AL) was also added to the subcommittee. He had an LCV score of 24% for the 105th and 31% for the 104th. In addition, he was put on the dirty dozen list by LCV.
4.) Other Congressional Committee Assignments:
We have received a 1-page list of the subcommittee assignments for the House Appropriations Committee, plus a 1-page list of the Republican subcommittee assignments to the Senate Committee on Environment & Public Works, plus a 2-page list of subcommittee assignments to the Senate Governmental Affairs Committee, plus a 1-page list of the subcommittee assignments to the Senate Committee on Energy & Natural Resources. Let us know if you would like us to fax you copies of any of the above.
ELECTRIC UTILITY RESTRUCTURING
1.) Congressional Restructuring Hearings:
A 2-page January 13 Reuters article reports that House Energy & Power Subcommittee Chairman Joe Barton (R-TX) hopes to hold hearings in March (including one in Texas) on federal power market restructuring legislation. It further reports that House Commerce Committee Chairman Thomas Bliley (R- VA) has made electricity market deregulation a "top priority" for this year. Finally, it notes that in late December, Rep. Steve Largent (R-OK), who sits on the Energy & Power Sub- committee, released the results of a survey he conducted with 15 out of the 21 panel members from the 105th Congress. He said that the members were prepared to move forward to "forge a consensus around a comprehensive restructuring bill ... [the] members' differences were regional rather than partisan, with the most frequently mentioned areas of concern being reliability, date certain, grandfathering, stranded costs, and universal service." Let us know if you want us to fax you a copy of the article.
2.) Renewables/Restructuring Study:
According to a new study released January 21 by the Union of Concerned Scientists, the United States could increase the share of electricity generated from renewable sources (wind, solar, biomass, and geothermal) to about 10 times current levels over the next 20 years and still see a 13% decrease in electricity prices. Expanding renewable electricity use to these levels would freeze power plants emissions of CO2 at about year 2000 levels. The report, "A Powerful Opportunity: Making Renewable Electricity the Standard," highlights a comparison between a strong proposal by Senator James Jeffords (R-VT) which would increase renewables to 20% of electricity generation by 2020 and a weaker proposal by the Clinton Administration which would result in a share of 5.5% by 2010. The report is available online at https://www.ucsusa.org/energy.
3.) Arizona Renewable Portfolio Standard:
The most recent issue of "Wind Energy Weekly" newsletter reports that a solar portfolio standard that would have required power suppliers in Arizona to obtain at least 1% of their electricity from solar power by the year 2003 is threatened by the election of a new Corporation Commissioner, Tony West (R). He is expected to reverse the earlier 2-1 vote in favor of the requirement on the grounds that it would increase the cost of electricity for consumers.
4.) Geothermal - Geysers Purchase:
A 4-page article from the January 17 "SR Press Democrat" reports that Calpine Corporation now stands to be the owner of nearly all of the Geyser's geothermal powerplants in California - the world's largest producing geothermal fields. The company has exercised its right to purchase the Pacific Gas & Electric (PG&E) plants in the part of the field served by their steam system for $213 million, and last week it was announced that it has an agreement to purchase (for an undisclosed price) Unocal's interest in the Geysers steam field and with it Unocal's right to purchase PG&E's powerplants in their part of the Geysers. This would make the company, which would control more than 800 MW of geothermal capacity, the state's largest producer of green electricity as well as one of the largest renewable energy producers in the United States. Incidentally, the article says that "industry experts" think that 20 to 50 percent of the 75,359 California residential customers who have thus far switched electricity supplier have switched "so they could go green." Let us know if you would like us to fax you a copy of the article.
CLIMATE CHANGE
1.) State of the Union/Climate Change:
President Clinton's January 19 comments on climate change are as follows: "[O]ur most fateful new challenge is the threat of global warming. Nineteen ninety-eight was the warmest year ever recorded. Last year's heat waves, floods, and storms are but a hint of what future generations may endure if we do not act now. Today, I propose a new clean air fund to help communities reduce greenhouse and other pollutants, and tax incentives and investment to spur clean energy technologies. And I want to work with members of Congress in both parties to reward companies that take early, voluntary action to reduce greenhouse gases."
The White House released 1-page of "background materials" on the above which broadly discusses the climate change tax package as well as the Clean Air Partnership Fund which would provide $200 million in FY2000 funding to be administered by EPA "supporting state, local and private efforts that achieve early reductions in both greenhouse gas emissions and ground-level air pollutants." Let us know if you would like us to fax you a copy.
SUN DAY issued a 1-page statement noting that Clinton's tax, budget, and policy proposals to address climate change were inadequate. Let us know if you would like us to fax or e-mail you a copy.
2.) 1998 Climate Overview:
The Union of Concerned Scientists has prepared a 14-page document "Global Warming: 1998 in Review" with subsections entitled: "Science, The Evidence Continues to Mount," "Extreme Weather: A Global Warming Preview," "Public Support: Continues to Gain Strength," " The Business Community: A New Attitude Begins to Emerge," "The Religious Community: Movement Towards Action," "International Negotiations: The Momentum Builds," "Congress: Hostility to Action, "Economic Studies: Costs Will be Small", and "Solutions: Slow But Steady Progress." Let us know if you would like us to fax or e-mail you a copy.
3.) Early Action Legislation:
A 2-page release from the Senate Committee on Environment & Public Works notes that the "first item on the committee's agenda" is Senator Chafee's "Credit for Voluntary Early Action" proposal (S.2617) co-sponsored by Senators Lieberman (D-CT) and Mack (R-FL). The proposal "would create a strong incentive for U.S. businesses to make voluntary reductions in greenhouse gas emissions by ensuring that the Federal government recognizes and rewards these companies for their actions." However, in a separate 1-page news release, the Global Climate Coalition warns that "interest by some companies in official credit for their voluntary actions should not be confused with endorsing the Kyoto Protocol. ... Since [1993], thousands of U.S. companies have improved energy efficiency, invested in energy technology, and re-thought strategic plans for new facilities. ... [I]industry does not need any new programs to do what we are already doing everyday." Let us know if you would like us to fax you either document.
MISCELLANEOUS
1.) Minnesota Wind Decision:
Minnesotans for an Energy-Efficient Economy (ME3) reports that the state's Public Utilities Commission has ordered the construction of an additional 400 MW of wind capacity. The Commissioners "reject[ed] Northern State Power's analysis and find that the development of an additional 400 MW of wind is in the public interest under a least-cost planning and resource planning analysis, and must be constructed during the years covered by the [utility's] resource plan." ME3 sees the decision as "an enormous victory for renewable advocates."
2.) Congressional Committee Priorities:
A 2-page article from last week's "CQ Monitor" describes the priorities for each committee of the 106th Congress. It notes that Commerce Committee Chairman Tom Bliley (R-VA) has set electricity deregulation as one of this top priorities as well as efforts to create an interim nuclear waste repository at Yucca Mountain, NV. The Government Reform Committee Chairman David McIntosh (R-IN) will emphasize the economic impact of the Kyoto Protocol. Senate Energy & Natural Resources Chairman Frank Murkowski's (R-AK) agenda includes oil and gas industry concerns, underground nuclear waste storage, and electricity deregulation. Ranking member Jeff Bingaman (D-NM) has signaled his willingness to compromise on deregulation but will still press for measures encouraging energy efficiency and renewables. The top priority of the Senate Government Affairs Committee is to get legislation moving to shift the budget process to a biennial basis which now has support from 37 senators. Senator James Inhofe (R-OK) wants the Environment & Public Works Committee to reauthorize the Clean Air Act to reduce current standards. Let us know if you would you like to see the article.
3.) House Renewables Caucus:
The House Renewable Energy Caucus has grown to 130 members with the addition of Reps. Phil English (R-PA), Jay Inslee (D-WA), and John LaFalce (D-NY).
4.) Comments on the EE/RE Executive Order:
In written comments sent January 19 to Vice President Al Gore, seventeen member groups of the Sustainable Energy Coalition urged the Administration to set aggressive goals in its draft executive order for using energy efficient and renewable energy technologies in federal buildings. The groups recommend that the "Federal government should lead the nation in reducing carbon emissions by setting a government-wide goal of 20% below 1990 baseline by 2010." They further propose that by 2005, 10% of Federal facilities' electricity come from "renewable energy (including hydroelectric up to 30MW), increasing by 1% each year thereafter, such that, by 2020, 25% of the Federal energy supply is from renewable sources." Finally, they suggest that ENERGY STAR standards "be used for all products for which such standards have been set" or, where no available, products that are either in "the upper 25% of energy efficiency or at least 10% more efficient than minimum levels" be purchased. Let us know if you would like us to e-mail or fax you a copy of the 4-page set of comments and list of signers.
GROUP URGES WHITE HOUSE ACTION ON RENEWABLE ENERGY
WASHINGTON - A coalition of environmental and business groups on Tuesday urged Vice President Al Gore to lead efforts for cutting federal government carbon emissions 20 percent below 1990 levels by the year 2010.
In a letter to Gore, 17 member groups of the Sustainable Energy Coalition asked the administration to set "aggressive goals" in an upcoming order for using energy efficient and renewable energy technologies in federal buildings.
"The federal government should lead the nation in reducing carbon emissions by setting a government-wide goal of 20 percent below 1990 baseline by 2010," the letter said.
The organisation was founded in 1992 to promote use of renewable technologies, like wind and solar power generation.
In addition to the 20 percent carbon emission reduction. the group proposed that by 2005, 10 percent of all federal facilities' electricity come from renewable energy - including hydroelectric - increasing by 1 percent each year thereafter.
Ultimately, the renewable energy share of the federal energy supply would reach 25 percent in the year 2020.
The group also asked that "energy star" standards - the information and ratings programme to inform consumers on the environmental qualities of products like dishwashers - be expanded to include a broader range of products.
Last year, the Alliance to Save Energy, a task force of 50 energy concerns, said the government could save U.S. taxpayers $1 billion a year if energy use in buildings was reduced and conformed to the Energy Policy Act and other rules.
Carbon emission reductions are a sensitive political subject. In November, the U.S. signed the Kyoto Protocol for curbing global greenhouse gas emissions. President Clinton, however, has not submitted the agreement for U.S. Senate ratification, as the deal faces strong opposition from Republicans and industrial-state Democrats.
The Kyoto Protocol outlines call for industrial nations to cut heat-trapping emissions from burning fossil fuels by an average of 5.2 percent below 1990 levels in the period 2008-2012.
FEDERAL ENERGY BUDGET AND TAXES
1.) Fiscal Year 2000 Budget and Tax Request:
We have received an unconfirmed report describing the Administration's Fiscal Year 2000 (FY'00) budget request as well as its climate change tax package -- both of which are now scheduled to be transmitted to Congress on February 1. The Administration is expected to request a FY'00 budget of $1.23 billion for the U.S. Department of Energy's renewable energy and energy efficiency programs; this compares to a FY'99 request of $1.21 billion and an actual FY'99 appropriation of $1.0 billion. The five-year, $3.6 billion climate change tax package is expected to include a multi-tiered set of incentives for the purchase of new (but not existing) homes that are significantly more efficient than called for by the Model Energy Code. In addition, it will include multi-tiered incentives for the purchase of energy-efficient electric heat pumps and natural gas water heaters as well as tax breaks for the purchase of solar thermal and photovoltaic rooftop solar systems. It will also include a five-year extension of the wind production tax credit, a small credit for combined heat & power systems, and incentives for the co-firing of biomass in fossil fuel plants as well opening the definition of "closed-loop" biomass systems to encourage the use of agricultural and forestry (but not municipal) waste. Finally, a multi-tiered set of incentives will be offered to encourage the purchase of hybrid electric vehicles as well as an extension of the current electric vehicle credit.
2.) Congressional Appropriations Assignments:
We have received a list of the Republican appointees to various House Appropriations subcommittees. On Energy & Water are Reps. Packard, Rogers, Knollenberg, Forbes, Frelinghuysen, Callahan, Latham, and (Young). On Interior are Reps. Regula, Kolbe, Skeen, Taylor, Nethercutt, Wamp, Kingston, Peterson, and (Young). On Veterans-HUD are Reps. Walsh, DeLay, Hobson, Knollenberg, Frelinghuysen, Wicker, Northrup, Sununu, and (Young). Let us know if you would like us to fax you a copy of the complete 1-page list.
3.) Wind Production Tax Credit:
The American Wind Energy Association reports that House and Senate Production Tax Credit bills will soon be re-introduced by lead sponsors Rep. Bill Thomas (R-CA) and Sen. Charles Grassley (R-IA). Senator Byron Dorgan (D-SD) is reportedly planning to become a co-sponsor as well.
4.) Opinion Survey - Gas Tax:
A 2-page article in a recent "Daily Report for Executives" reports that a poll released January 7 by the American Lung Association found that most Americans are willing to pay up to 5 cents extra for a gallon of gasoline if the more expensive fuel would cut tailpipe emissions. The survey of 1,000 people found 69% willing to pay the extra nickel while 39% would be willing to pay up to 10 cents more.
ELECTRIC UTILITY RESTRUCTURING
1.) U.S. Department of Energy/Deregulation:
The January 5 issue of "PowerPlus Daily" reports that DOE intends to make changes to its utility restructuring proposal that address the congressional criticisms from last session, including public power tax issues and the future of the Tennessee Valley Authority. The article says Administration and DOE officials are optimistic that the changes will result in a more streamlined approach to the passage of a bill. However, House Speaker Rep. Dennis Hastert (R-IL) has rejected the notion of a national mandate on electricity deregulation saying that he believes the states know what is in the best interest of their citizens.
2.) New Jersey/Restructuring:
We received a 2-page memo (let us know if you would like us to fax you a copy) from New Jersey PIRG which criticizes a deregulation bill being considered by the New Jersey legislature; the group views the bill as "deeply flawed [and] anti-consumer." We received a second memo from the Natural Resources Defense Council saying that it "respectfully but strongly disagrees" with NJ PIRG. Finally, the Pace Energy Project (914-422-4221; esmeloff@genesis.law.pace.edu) sent along the following summary of the New Jersey restructuring legislation itself.
Societal Benefits Charge - Funding for eight years. Starting at ~ $110 million per year rising to $140 million. 25% to be set aside for renewable energy programs. Specific program design to occur 1 year after start of retail choice. After 8 years BPU to determine ongoing level of funding.
Renewable Portfolio Standard - Two tiered program. Class one (good renewables) - Starts at .5% in 2001 and rises to 1.0% by 2006 then increases by .5% per year to 4% by 2012. Class two (incinerators and hydro) - 2.5%
Emissions Portfolio Standard - Tied to implementation of an EPS in Pennsylvania and Maryland or Delaware
Disclosure - Uniform disclosure for CO2, NOX, SO2 and any other pollutant the BPU determines to be an environmental or health hazard
Net Metering - For PV and wind. Residential and small commercial customers are eligible. Annualized true-up with any excess purchased at avoided costs. Single, non-demand meter allowed. Capped at $2 million annual impact to basic generation service providers.
Municipal Aggregation - Opt-out allowed if supported by majority of voters in a referendum.
Low Income Support - Creates a Universal Service Fund with no sunset. Level of funding and program design to be determined by BPU.
Rate Cuts - At least 5 percent by Aug. 1 1999 at time of retail choice.
Increasing to 10 percent by 36 months after introduction of retail choice. Lasting at least 48 months after introduction.
Securitization - 75% of stranded costs
Shopping credit - To be determined by BPU for each utility service area. This is likely to be a contentious issue before the BPU. Utilities want low shopping credit in order to increase the likelihood of full recovery of stranded costs (25% is at risk). PSE&G has indicated it will sue to overturn the restructuring legislation if a high shopping credit is set. Utility stranded cost recovery is scheduled to be completed in 8 years.
CLIMATE CHANGE
1.) Al Gore on the Heat of 1998:
Vice President Al Gore issued a statement on January 11 noting that "1998 was the warmest year on record [which provides] yet more evidence that global warming is real. ... [T]he extreme weather of the past year offered vivid proof of what our leading scientists have been telling us for some time: our climate is changing. The withering drought, deadly heat waves and devastating floods were a sobering taste of what future generations will endure unless we take steps to reduce greenhouse gas pollution."
2.) Early Action Editorial:
A 3-page op-ed by Jack Kemp and Fred Smith in the January 13 "New York Times" criticizes the proposed "early action" (to reduce greenhouse gas emissions) bill by Senators Chafee, Lieberman, and Mack. They view it as a "milder version of the Kyoto treaty [that] would create a vast array of bureaucrats, at home and abroad, who would employ vague standards, arbitrary conditions, and dubious science to allocate economic rights and privileges." Let us know if you would like to see a copy.
3.) Oil Outlook:
According to the "Short-Term Energy Outlook," just released by the Energy Information Administration, notwithstanding assumptions of slower economic growth, U.S. petroleum demand is expected to increase in 1999 by over 500,000 barrels per day, or 2.9%, from 1998 levels. Much of this growth is expected as a result of increases in demand for heating oil and other weather- sensitive products (e.g., propane and heavy fuel oil), based on as assumed return to normal weather patterns, as well as continued growth in transportation demand. U.S. petroleum demand is expected to rise by an additional 300,000 barrels per day in 2000. U.S. net imports of petroleum 2000 are forecast to account for 52% of total U.S. petroleum demand, up from an estimated 50% in 1998. The report also notes that electricity demand is expected to increase 1.6% over 1998 levels while it is projected to increase by 2.2% in 2000. The document can be found at https://www.eia.doe.gov/emeu/steo/pub.
MISCELLANEOUS
1.) House Renewable Energy Caucus Grows:
Reps. Dale Kildee (D-MI), Anthony Weiner (D-NY), and freshman Greg Walden (R-OR) are the three newest members of the House Renewable Energy Caucus; that brings membership up to 127.
2.) Help Expand the Senate Renewable/Efficiency Caucus:
Senator Byron Dorgan (D-ND) has indicated that he plans to become the 17th member of the Senate Renewable Energy and Energy Efficiency Caucus. If you want to help expand the Caucus' membership further, note that the organization Common Purpose has created a webpage that allows people to send an e-mail to their individual Senators, requesting them to join the Senate Caucus. It can be found at https://www.serve.com/commonpurpose/congress/scaucus.html.
3.) Launching Earth Day 2000:
On April 22, 1999, Denis Hayes will officially launch an international campaign, "Earth Day 2000: New Energy for a New Era" which its organizers say "will accelerate the transition from outdated fossil fuel and nuclear energy technologies to clean, safe renewable energy sources." Regional groups are expected to hold their own media events in cities and towns across the country. To join the launch, send an e-mail to Christopher Curtis, Earth Day Network's National Coordinator, at ccurtis@earthday.net. Let us know if you would like us to fax you a 2-page memo outlining Earth Day 2000 "launch ideas" or a 2-page memo describing Earth Day 2000 more generally.
4.) Nuclear Industry Optimism:
A new survey by the Washington International Energy Group of utility executives finds that "confidence in the viability and performance of nuclear plants has significantly increased at last, coinciding with the first sales of some plants as competitive assets. 65% believe nuclear plants will operate through their initial license terms -- up from 49% in 1998 while 47% of respondents believe the licenses for most nuclear power plants will be extended -- up from 30% last year.
5.) Tritium/Weapons Decision:
A 2-page article from the "Waste Basket" bulletin (published by Taxpayers for Common Sense) reported that "making the best of a bad set of options, Secretary of Energy Bill Richardson courageously saved American taxpayers at least $5 billion by choosing on December 22 to produce tritium in the cheapest and most flexible way. The Secretary recommended the Watts Bar and Sequoyah nuclear power plants in Tennessee as the production sites for the material - a key ingredient in the creation and maintenance of the U,S, nuclear weapons arsenal. A better option would be to reduce the need for tritium production by cutting the total number of U.S. nuclear weapons. ... But the Energy Secretary wasn't given that option." Let us know if you would like us to fax you a copy of the article.
6.) Rep. Dennis Hastert/cont.:
A 4-page release from People for the American Way Foundation details the right-wing leanings of new House Speaker Dennis Hastert (R-IL). Among other things, it notes that Hastert has received ratings of 100% from the Christian Coalition, National Rifle Association, National Right to Life, National Federation of Independent Businesses, and the U.S. Chamber of Commerce, as well as an 88% from the American Conservative Union. He scored "0" in ratings by the ACLU and AFL-CIO. Let us know if you would like us to fax you a copy.
7.) ASE Job Opening:
The Alliance to Save Energy is seeking a Development Associate to handle "major corporate donors, special events, publications, and proposals." Benefits include "good salary (commensurate) [and] great office environment." Resume, writing samples, and three letters of reference should be sent to Dr. Michael McKee, 1200 18th Street, N.W; Suite #900; Washington, D.C. 20036-2506.
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